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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: diddlysquatz who wrote (4646)	1/24/2014 3:22:24 PM
From: Goose94	Read Replies (1) \| Respond to of 203031

The gold price leapt $29.80, or 2.2 percent, Jan 23, 2014 on speculation that India could soon lift its curbs on bullion imports, with the precious metal reaching $1,264.60 on the spot market at the close of trading in New York on Thursday — a 6-week high. Gold futures also surged on the news, climbing $25.80 to $1,264.50 an ounce. A weaker U.S. dollar added to the gold price. India is the top consumer of gold but recent restrictions by the Indian government to curb bullion imports, in an effort to narrow the current account deficit, have squelched gold buying and that has put pressure on the price. The Times of India however reports that the Indian government is considering easing restrictions, including a 10 percent import duty imposed last year. That rumor was strengthened today when Sonia Gandhi, leader of India’s Congress Party, said she has written to the central government asking for a cut in the import duty and an easing of other restrictions. The bullish price action for gold on Thursday echoed the metal’s movements on Monday, when it neared the previous 6-week peak of $1,259.85. However, that sentiment changed mid-week, with gold futures sliding $10.20 to $1,241.70 on Tuesday, on technical selling, and February gold edging down $2.70 on Wednesday. Two further positive indications for gold were reported this week by Sharps Pixley. The London-based bullion dealer noted that speculators ahead of the next Fed meeting on January 28-29 have increased their net long gold positions by 7.6 percent; and that gold futures so far this year have outperformed the S&P 500, (INDEXSP:.INX) the Euro Stoxx 50 Index, and the U.S. dollar index. While gold bulls were out in force this week especially due to the news from India, Thomson Reuters GFMS dampened enthusiasm with an updated report on its 2013 gold survey, released Thursday. On the upside, the report confirms the widely held view that gold flowing out of ETFs in the West “moved dramatically eastwards during the middle of 2013 as professional investor disgorged metal, for it to be snapped up by rampant demand in Asia and the Middle East. ” And while that trend is likely to continue in 2014, keeping the market in “fundamental balance,” the report authors speculate that the average gold price is expected to average $1,225 an ounce this year — 13 percent below 2013.